(SAN JOSE, CALIF.) /PR NEWSWIRE  First Call/ Aug. 5, 2004  Calpine
Corporation [NYSE:CPN], one of North Americas leading power companies, today
announced financial and operating results for the three and six months ended
June 30, 2004. A conference call, set for 8:30 a.m. PDT today, will be
accompanied by a comprehensive presentation of the financial and operating
results for the quarter. The presentation will be located on Calpines investor
relations page at www.calpine.com.

For the three months ended June 30, 2004, the company reported a loss per
share of $0.07, or $28.7 million of net loss, compared to a loss per share of
$0.06, or $23.4 million of net loss for the quarter ended June 30, 2003. The
results for the second quarter of 2004 include a gain of approximately $0.25
per share associated with the restructuring and sale of power purchase
agreements for two of the companys New Jersey power plants, net of transaction
costs and the write-off of unamortized deferred financing costs; $0.02 per
share from the restructuring of a long-term gas supply contract, net of
transaction costs; and $0.02 per share from the King City restructuring
transaction, which gave rise to a gain from the sale of the companys
collateral debt securities, net of transaction costs and write-off of deferred
financing costs. This gain was offset by non-cash charges including losses of
$0.02 per share from the expensing of deferred financing costs in connection
with refinancing activities; $0.03 per share from mark-to-market activities,
net; and $0.01 per share from foreign exchange transaction losses. The results
for the three months ended June 30, 2003, included a gain of approximately
$0.10 per share, or $52.8 million, in connection with terminating a tolling
arrangement with a unit of Aquila on the Acadia facility.

For the six months ended June 30, 2004, the company reported a $0.24 loss
per share, or a $99.9 million of net loss, compared with a $0.20 loss per
share, or a $75.4 million of net loss for the six months ended June 30, 2003.

Second Quarter

(unaudited)

2004

2003

% Chg

Megawatt-hours Generated (millions)
(a)

22.1

17.5

26

%

Megawatts in Operation at June 30

26,285

22,351

18

%

Revenue (millions)

$

2,314.6

$

2,165.3

7

%

Net Loss (millions)

$

(28.7

)

$

(23.4

)

23

%

Diluted Loss Per Share

$

(0.07

)

$

(0.06

)

17

%

Operating Cash Flow (millions)

$

185.2

$

(52.1

)

455

%

EBITDA, as adjusted (millions)
(b)

$

388.5

$

344.4

13

%

EBITDA, as adjusted, for non-cash
and other charges (millions)
(c)

$

445.9

$

393.8

13

%

Total Assets (billions)

$

27

$

26

4

%

(a)

From continuing operations.

(b)

Earnings Before Interest, Tax, Depreciation and Amortization, as
adjusted; see attached
Supplemental Data
for reconciliation from net
income.

During the second quarter, power plant performance remained strong, and
we continued to execute on our liquidity-enhancing and financing programs,
stated Calpine Chief Executive Officer and President Peter Cartwright.
Calpines earnings, however, were impacted by weak spark spreads across North
America as well as additional operating, depreciation and interest costs
associated with new plants coming on line.

For the quarter, Calpine added five plants to our power portfolio,
representing more than 3,100 net megawatts of new capacity. Consistent with our
long-term strategy, several of these new facilities are now serving major
wholesale customers under long-term power and steam sales contracts. On the
liquidity and financing front, we completed approximately $506 million in
financing and liquidity transactions, and repurchased $181.6 million of debt
and preferred securities.

During the quarter, we continued to see promising signals that point to a
positive market shift, continued Cartwright. Sparks spreads, while weak
overall, rose quarter-over-quarter in all major markets, except for ERCOT.
Power consumption in North America increased by about 2.4%, and we experienced
record peak demand in two of Calpines major power markets. Moving forward,
Calpine will continue our program to enhance liquidity, increase our
revenue-generating capabilities, lower operating and overhead costs, and
strengthen our balance sheet.

2004 Second Quarter Results

Calpine recorded a net loss of $28.7 million for the three months ended
June 30, 2004, compared to a net loss of $23.4 million for the same period in
2003, as gross profit decreased by $107.9 million, or 61%, to $67.7 million.
The gross profit decrease is the result of lower per megawatt-hour spark
spreads realized during the three months ended June 30, 2004, and additional
costs associated with new power plants coming on line. For the three months
ended June 30, 2004, Calpine generated 22.1 million megawatt-hours, which
equated to a baseload capacity factor of 47%, and realized an average spark
spread of $21.91 per megawatt-hour. For the same period in 2003, Calpine
generated 17.5 million megawatt-hours, which equated to a capacity factor of
48%, and realized an average spark spread of $26.93 per megawatt-hour. In the
quarter ended June 30, 2004,
the company netted approximately $322 million of sales of purchased power
for hedging and optimization with purchased power expense. This was due to the
adoption on October 1, 2003, on a prospective basis, of new accounting rules
related to presentation of non-trading derivative activity. Without this
netting from sales of purchased power for hedging and optimization, total
revenue would have grown by approximately 22% versus 7% as reported. Additional
increases in power plant costs for the three months ended June 30, 2004, as
compared to the three months ended June 30, 2003, include a $22.8 million
increase in depreciation expense and a $64.0 million increase in plant
operating expense. Also, during the three months ended June 30, 2004, financial
results were affected by a $115.1 million increase in interest expense and
distributions on trust preferred securities, as compared to the same period in
2003. This occurred as a result of higher debt balances, higher average
interest rates and lower capitalization of interest expense as new plants
entered commercial operation. The results for the three months ended June 30,
2003, included a gain of approximately $0.10 per share, or $52.8 million, in
connection with terminating a tolling arrangement with a unit of Aquila on the
Acadia facility.

Other income was $206.0 million higher in the three months ended June 30,
2004, compared to the prior year primarily due to pre-tax income in the amount
of $171.5 million associated with the restructuring and sale of power purchase
agreements for two of the companys New Jersey plants, net of transaction costs
and the write-off of unamortized deferred financing costs; an $11.7 million
pre-tax gain from the restructuring of a long-term gas supply contract, net of
transaction costs; and a $12.6 million pre-tax gain from the King City
restructuring transaction related to the sale of the companys collateral debt
securities, net of transaction costs.

2004 Six-Month Results

Calpine recorded a net loss of $99.9 million for the six months ended June
30, 2004, compared to a net loss of $75.4 million for the six months ended June
30, 2003. Gross profit decreased by $152.5 million, or 45%, to $188.2 million.
This decrease is the result of lower per megawatt-hour spark spreads realized
during the six months ended June 30, 2004, and additional costs associated with
new power plants coming on line. For the six months ended June 30, 2004,
Calpine generated 43.1 million megawatt-hours, which equated to a capacity
factor of 48%, and realized an average spark spread of $21.49 per
megawatt-hour. For the same period in 2003, Calpine generated 36.6 million
megawatt-hours, which equated to a capacity factor of 52%, and realized an
average spark spread of $24.83 per megawatt-hour. Additional increases in power
plant costs for the six months ended June 30, 2004 as compared to the six
months ended June 30, 2003, include a $38.4 million increase in depreciation
expense, a $77.9 million increase in plant operating expense and a $10.9
million increase in transmission purchase expense. Also, during the six months
ended June 30, 2004, financial results were affected by a $211.3
million increase in interest expense and distributions on trust preferred
securities, as compared to the first six months of 2003. This occurred as a
result of higher debt balances, higher average interest rates and lower
capitalization of interest expense as new plants entered commercial operation.

Other income increased by $259.1 million during the six months ended June
30, 2004, as compared to the same period in 2003, primarily as a result of the
factors indicated in the three-month discussion found above, and because during
the six months ended June 30, 2004, the company recorded a foreign currency
transaction gain of $4.8 million compared to a loss of $44.3 million in the
corresponding period in 2003.

Finance Program Highlights

During the past several months, Calpine continued to focus on enhancing
liquidity and addressing near-term financing obligations with a number of
transactions, including:



The refinancing of its Rocky Mountain and Riverside Energy Centers
with the issuance of $633.4 million of floating rate secured
institutional term loans due 2011. After repayment of amounts
outstanding under existing non-recourse project financing facilities,
the refinancing returned approximately $160 million to Calpine for
general corporate purposes.

The restructuring and sale of its power contracts related to two of
its plants in New Jersey, the 118-megawatt Parlin and 58-megawatt
Newark Power Plants. Calpine raised approximately $101 million after
transaction costs and the repayment of approximately $79 million of
non-recourse project debt associated with the projects.



In transactions initiated during the second quarter, Calpine has
repurchased $181.6 million of the principal amount of its outstanding
debt and its High Tides preferred securities as listed below:

-

8 1/4% Senior Notes Due 2005

$

38,950,000

-

7 3/4% Senior Notes Due 2009

$

11,000,000

-

8 1/2% Senior Notes Due 2011

$

9,000,000

-

10 1/2% Senior Notes Due 2006

$

7,650,000

-

5 3/4% High Tides I

$

40,000,000

-

5 1/2% High Tides II

$

75,000,000

The securities were repurchased in exchange for approximately $56.2
million in cash and approximately 24.3 million shares of Calpine
common stock valued at approximately $112.5 million.



Calpine created a new entity, Calpine Energy Management (CEM), and
implemented a new credit enhancement structure that it expects will
increase working capital and improve margins. CEM has entered into a
$250 million letter of credit facility with Deutsche Bank (rated
Aa3/AA-) that expires in October 2005. Deutsche Bank will guarantee
CEMs short-term power and gas obligations by issuing letters of
credit. CEM will provide Deutsche Bank with collateral in the form of
receivables from its power sales.



The company continued to reduce capital requirements for Calpine
Energy Services (CES), the companys commodity transaction and risk
management subsidiary. Compared to the first quarter of 2004, CESs
total collateral requirements decreased by 11% to $288 million from
$323 million.

The company has identified a number of potential liquidity-enhancing
opportunities that could raise in excess of $2 billion through transactions
that include the issuance of additional First Priority Secured Debt, previously
announced sale of the companys Canadian gas reserves and certain of its U.S.
gas reserves, the monetization of power contracts, construction financing and
the sale of a preferred interest in certain projects.

Power Plant and Natural Gas Operations

Calpine is a leading North American power company. Together, its 91
gas-fired and geothermal power plants currently in operation are capable of
delivering up to 26,200 net megawatts of electricity for wholesale and
industrial customers in 21 states, three Canadian provinces and the United
Kingdom. In addition, Calpine is nearing completion of its merchant
construction program and is selectively moving forward with construction on
projects with long-term contracts in place. During the quarter, Calpine:

Operated its natural gas-fired and geothermal power plants with an
average plant availability factor of 89%, compared to an 87% average
availability for the same period a year ago;



Generated 22.1 million megawatt-hours, a 26% increase over the second
quarter of 2003. Through hedging and optimization activity at its
Calpine Energy Services subsidiary, the company delivered an
additional 20.9 million
megawatt-hours;



Achieved an average heat rate of 7,203 British thermal units per
kilowatt-hour, compared to 7,234 for the second quarter in 2003;



Maintained a $5.49 average operating expense per megawatt-hour
(assuming a 70% capacity factor) for the trailing twelve-month period
ending June 30, 2004, up slightly from $5.44 in 2003 due to seasonal
major maintenance costs incurred during the quarter;



Completed construction of five new, highly efficient power plants,
totaling more than 3,100 megawatts. These modern, gas-fired
facilities supply major wholesale and industrial customers under
long-term power and steam sales contracts.



Managed the production of approximately 204 million cubic feet
equivalent per day of natural gas  representing about 14% of
Calpines total North American fuel consumption.

New Power Contract Opportunities

Calpine continued to execute its strategy of entering into long-term
contracts and providing customers with a wide range of customized energy
products and services. The company serves more than 100 wholesale and large
retail customers through approximately 150 contracts. Today, Calpine is
pursuing nearly 21,000 megawatts of contract opportunities.

During the quarter, the company entered into 24 new power contracts,
totaling more than 2,300 megawatts.

Through
June 30, 2004, the company has signed 42 power contracts  representing approximately 4,300 megawatts of capacity and approximately 133
million megawatt-hours. The average on-peak spark spread for these contracts is
approximately $17.00 per megawatt-hour, with a five-year weighted average life.

Recent power contracts include:



An expanded, long-term contract with Wisconsin Public Service
Corporation. The new 235-megawatt, ten-year power sales commitment
for capacity, energy and ancillary services is scheduled to begin on
June 1, 2006, subject to approval by the Public Service Commission of
Wisconsin. The additional commitment will be supported through an
expansion of the Fox Energy Center, currently under construction in
Kaukauna, Wis.

A five-year agreement for 200 megawatts of capacity and energy for
Snapping Shoals Electric Membership Corporation. Electricity will be
delivered from Calpines Hog Bayou Energy Center located in Mobile,
Ala. beginning January 1, 2005.



A 25-year agreement with The Dow Chemical Company (Dow) for the sale
of up to 200 megawatts of electricity commencing in 2006 and one
million pounds per hour of steam beginning in 2005 to Dows Freeport,
Texas facility.



A proposed 20-year, 79.9-megawatt power contract for capacity and
related energy and ancillary services to the Long Island Power
Authority (LIPA) beginning in June 2005. The contract remains subject
to review and approval by the State of New Yorks Comptroller and
Attorney General.

Included in the
Supplemental Data
with this news release is an updated
report summarizing Calpines total estimated generation capacity and capacity
currently under contract through 2009. A full detailed report is available on
the companys website on its investor relations page at www.calpine.com.

2004 Earnings and Cash Flow Guidance

The company is reaffirming its breakeven GAAP earnings guidance for the
year ending December 31, 2004. The company is also reaffirming that EBITDA, as
adjusted, is anticipated to be approximately $1.7 billion for 2004.

Conference Call Information

Calpine will host a conference call to discuss its financial and operating
results for the three and six months ended June 30, 2004 this morning,
Thursday, August 5, 2004, at 8:30 a.m. PDT. To participate via the
teleconference (in listen-only mode), dial 1-888-603-6685 at least five minutes
before the start of the call. In addition, Calpine will simulcast the
conference call and a PowerPoint presentation live via the Internet. The web
cast and presentation will be available for 30 days on Calpines investor
relations page at www.calpine.com.

About Calpine

Calpine Corporation, celebrating its 20th year in power, is a leading
North American power company dedicated to providing electric power to customers
from clean, efficient, natural gas-fired and geothermal power plants. The
company generates power at plants it owns or leases in 21 states in the United
States, three provinces in Canada and in the United Kingdom. Calpine also owns
or controls approximately one trillion cubic feet equivalent of proved natural
gas reserves in the United States and Canada. The company is listed on the S&P
500 and was named
FORTUNEs
Most Admired Energy Company in America for 2004.
Calpine was founded in 1984 and is publicly traded on the New York
Stock Exchange under the symbol CPN. For more information, visit
www.calpine.com.

This news release discusses certain matters that may be considered
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, including statements regarding the intent, belief or
current expectations of Calpine Corporation (the Company) and its management.
Prospective investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve a number of risks and
uncertainties that could materially affect actual results such as, but not
limited to, (i) changes in legislation and regulation of energy markets and the
rules and regulations adopted from time to time with respect thereto; (ii) the
timing and extent of changes in commodity prices for energy, particularly
natural gas and electricity; (iii) commercial operations of new plants that may
be delayed or prevented because of various development and construction risks,
such as a failure to obtain the necessary permits to operate, failure of
third-party contractors to perform their contractual obligations or failure to
obtain financing on acceptable terms; (iv) unscheduled outages of operating
plants; (v) a competitors development of lower cost generating gas-fired power
plants; (vi) risks associated with marketing and selling power from power
plants in dynamic energy markets; (vii) the successful exploitation of an oil
or gas resource that ultimately depends upon the geology of the resource, the
total amount and costs to develop recoverable reserves and operations factors
relating to the extraction of natural gas; (viii) the effects on the Companys
business resulting from reduced liquidity in the trading and power industry;
(ix) the Companys ability to access the capital markets or obtain bank
financing on attractive terms; (x) the direct or indirect effects on the
Companys business of a lowering of its credit rating (or actions it may take
in response to changing credit rating criteria), including, increased
collateral requirements, refusal by the Companys current or potential
counterparties to enter into transactions with it and its inability to obtain
credit or capital in desired amounts or on favorable terms; and (xi) other
risks identified from time-to-time in the Companys reports and registration
statements filed with the SEC, including its Annual Report on
Form 10-K
for the
year ended Dec. 31, 2003, and its Quarterly Report on
Form 10-Q
for the quarter
ended March 31, 2004, which can also be found on the Companys website at
www.calpine.com. This news release includes certain non-GAAP financial measures
as defined under SEC rules. As required by SEC rules, we have provided a
reconciliation of those measures to the most directly comparable GAAP measures,
which can be found in the Supplemental Data tables in this release. All
information set forth in this news release is as of todays date, and the
Company undertakes no duty to update this information.

- table follows -

CALPINE CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
For the Three and Six Months Ended June 30, 2004 and 2003
(In thousands, except per share amounts)
(unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2004

2003

2004

2003

Revenue:

Electric generation and marketing revenue

Electricity and steam revenue

$

1,312,792

$

1,046,260

$

2,558,678

$

2,146,328

Sales of purchased power for hedging and optimization

496,652

744,805

876,680

1,426,089

Total electric generation and marketing revenue

1,809,444

1,791,065

3,435,358

3,572,417

Oil and gas production and marketing revenue

Oil and gas sales

26,069

29,299

50,651

55,210

Sales of purchased gas for hedging and optimization

481,971

328,478

834,708

655,945

Total oil and gas production and marketing revenue

508,040

357,777

885,359

711,155

Mark-to-market activities, net

(22,605

)

1,839

(10,086

)

22,282

Other revenue

19,755

14,627

46,741

25,386

Total revenue

2,314,634

2,165,308

4,357,372

4,331,240

Cost of revenue:

Electric generation and marketing expense

Plant operating expense

223,664

159,646

399,498

321,574

Transmission purchase expense

14,651

11,330

31,078

20,156

Royalty expense

6,951

6,461

12,833

11,818

Purchased power expense for hedging and optimization

445,169

738,719

820,108

1,418,668

Total electric generation and marketing expense

690,435

916,156

1,263,517

1,772,216

Oil and gas operating and marketing expense

Oil and gas operating expense

23,443

29,033

45,770

54,694

Purchased gas expense for hedging and optimization

453,922

331,122

814,409

648,070

Total oil and gas operating and marketing expense

477,365

360,155

860,179

702,764

Fuel expense

867,785

539,409

1,630,490

1,174,778

Depreciation, depletion and amortization expense

161,789

138,957

311,203

272,771

Operating lease expense

26,963

28,168

54,762

55,860

Other cost of revenue

22,607

6,870

48,988

12,121

Total cost of revenue

2,246,944

1,989,715

4,169,139

3,990,510

Gross profit

67,690

175,593

188,233

340,730

Loss (income) from unconsolidated investments in power
projects and oil and gas properties

718

(59,351

)

(1,788

)

(64,475

)

Equipment cancellation and impairment cost

7

19,222

2,367

19,309

Project development expense

4,030

6,072

11,748

11,158

Research and development expense

5,124

2,469

8,939

4,860

Sales, general and administrative expense

60,978

53,710

118,225

97,367

Income (loss) from operations

(3,167

)

153,471

48,742

272,511

Interest expense

279,659

148,879

534,452

291,840

Distributions on trust preferred securities



15,656



31,313

Interest (income)

(9,920

)

(9,003

)

(21,981

)

(17,037

)

Minority interest expense

4,724

5,335

13,159

7,612

(Income) from repurchase of various issuances of debt

(2,559

)

(6,763

)

(3,394

)

(6,763

)

Other expense (income)

(185,571

)

20,467

(203,996

)

55,056

Loss before (benefit) for income taxes

(89,500

)

(21,100

)

(269,498

)

(89,510

)

(Benefit) for income taxes

(60,604

)

(4,725

)

(146,553

)

(21,596

)

Loss before discontinued operations and cumulative
effect of a change in accounting principle

Cumulative effect of a change in accounting principle,
net of tax provision of
$, $, $ and $450







529

Net loss

$

(28,698

)

$

(23,366

)

$

(99,890

)

$

(75,382

)

- table continues -

Three Months Ended

Six Months Ended

June 30,

June 30,

2004

2003

2004

2003

Basic and diluted loss per common share:

Weighted average shares of common stock outstanding

417,357

381,219

416,332

381,089

Loss before discontinued operations and cumulative
effect of a change in accounting principle

$

(0.07

)

$

(0.04

)

$

(0.30

)

$

(0.18

)

Discontinued operations, net of tax

$



$

(0.02

)

$

0.06

$

(0.02

)

Cumulative affect of a change in accounting principle,
net of tax

$



$



$



$



Net loss

$

(0.07

)

$

(0.06

)

$

(0.24

)

$

(0.20

)

The financial information presented above and in the Supplemental Data is subject to adjustment until the company files its Form
10-Q with the United States Securities and Exchange Commission for the three and six months ended June 30, 2004.

Notes payable and borrowings under lines of credit,
net of current portion

861,424

873,572

Notes payable to Calpine Capital Trusts

1,153,500

1,153,500

Preferred interests, net of current portion

142,064

232,412

Capital lease obligation, net of current portion

283,005

193,741

CCFC I financing, net of current portion

784,661

785,781

CalGen/CCFC II financing

2,448,907

2,200,358

Construction/project financing, net of current portion

1,723,040

1,209,505

Convertible Senior Notes Due 2006

72,126

660,059

Convertible Senior Notes Due 2023

900,000

650,000

Senior notes, net of current portion

9,370,936

9,369,253

Total long-term debt

17,739,663

17,328,181

Total debt

$

18,071,140

$

17,677,309

Minority interests

$

350,561

$

410,892

Total stockholders equity (6)

$

4,600,891

$

4,621,253

Total capitalization

$

23,022,592

$

22,709,454

Debt to capitalization ratio

Total debt

$

18,071,140

$

17,677,309

Total capitalization

$

23,022,592

$

22,709,454

Debt to capitalization

78

%

78

%

(1)

This non-GAAP measure is presented not as a measure of operating results,
but rather as a measure of our ability to service debt and to raise additional
funds. It should not be construed as an alternative to either (i) income from
operations or (ii) cash flows from operating activities.
It is defined as net income less income from unconsolidated investments,
plus cash received from unconsolidated investments, plus provision for tax,
plus interest expense (including distributions on trust preferred securities
and one-third of operating lease expense, which is managements estimate of
the component of operating lease expense that constitutes interest expense,)
plus depreciation, depletion and amortization. The interest, tax and
depreciation and amortization components of discontinued operations are
added back in calculating EBITDA, as adjusted.

(2)

This non-GAAP measure is presented as a further refinement of EBITDA, as
adjusted, to reflect the companys ability to service debt with cash.

(3)

Does not include MWh generated by unconsolidated
investments in power projects.

(4)

From continuing
operations.

(5)

Amounts based on Calpines ownership percentage.

(6)

Includes accumulated other comprehensive income (AOCI) of $22,054 at June
30, 2004, and $56,594 at December 31, 2003. Excluding AOCI from stockholders
equity would change the debt to capitalization ratio to 79% at June 30, 2004,
but would not change the debt to capitalization ratio at December 31, 2003.

FORWARD-LOOKING STATEMENT
This presentation discusses certain matters that may be considered "forward-looking"
statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended, including statements
regarding our expected financial performance, our strategic and operational plans, as well
as all assumptions, expectations, predictions, intentions, or beliefs about future events.
Investors are cautioned that any forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements. We refer you to the
documents we file from time to time with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the year ended December 31, 2003 and our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, which can also be
found on our website at www.calpine.com. We undertake no duty to update any forward-
looking statements. This presentation also includes certain non-GAAP financial measures
as defined under SEC rules. As required by SEC rules, we have provided a reconciliation of
those financial measures to the most directly comparable GAAP measures, which can be
found in Appendix A of this presentation. The financial information presented is subject
to adjustment until we file our Form 10-Q with the United States Securities and Exchange
Commission for the three months ended June 30, 2004.

2nd QTR 2004 FINANCIAL RESULTS
WORKING CAPITAL ENHANCEMENT
Created New Entity, Calpine Energy Management, for a New Credit
Enhancement Structure
Deutsche Bank to Provide $250 Million Letter of Credit Facility
Will Match Gas Payment Terms and Timing of Power Sales Receivables
AA- Letters of Credit Issued to Cover Short-Term Gas and Power
Credit Obligations
New Credit Enhancement Structure Expected to Increase
Working Capital and Enhance Company Margins

APPENDIX D: CONTRACTUAL PORTFOLIO
DEFINITIONS
The following detailed reports represent several data points for Calpine's power generation
portfolio as of June 30, 2004.
Estimated Generation
Baseload - Estimated generation, in millions of megawatt hours, represents the baseload
generation capacity of Calpine's fleet based upon a 95% plant availability level. This
availability factor is used to account for scheduled maintenance and other
miscellaneous outages. It also takes into account the generation capacity year-by-year
as a result of our current estimates of commercial operation dates for those plants
currently in construction.
Peaking - Estimated generation, in millions of megawatt hours, represents a peaking
generation capacity based upon a 30% plant availability and dispatch factor or higher if
a plant-specific contract dictates.

APPENDIX D: CONTRACTUAL PORTFOLIO
DEFINITIONS (continued)
Contractual Generation
This represents in millions of megawatt hours, the baseload and peaking generation under
contract. For those contracts that are take or pay, the contractual generation estimate
assumes the customers take 100% of the contracted power.
Contracts Announced / Signed Subsequent to June 30, 2004
Contracts that have been announced and, or signed subsequent to June 30, 2004 are not
reflected in this data. Such contracts, as they are finalized, will be reflected in future
Contractual Portfolios.
% Sold
Calculated as the contractual generation divided by the estimated generation.
Contractual Spark Spread
Represents the contractual or "locked in" spark spread embedded in the company's
contracted portfolio. Also includes the value of the company's equity gas reserves which
is represented by the market price of gas less operating costs.